§ Mr. Peter BottomleyTo ask the Secretary of State for Transport how he estimates the value of regeneration benefits of transport infrastructure improvements.
§ Mr. MacGregorRegeneration benefits, unlike the other benefits of a transport scheme, are predominantly benefits to the locality often achieved at the cost of less activity elsewhere. They are, therefore, counted "below the line" in a scheme appraisal, not as part of the gains to the national economy. This is standard Government practice in the appraisal of industrial and regional assistance.
Attempts at valuation generally focus on forecast increases in the value of commercial and industrial land in the immediate area. In any valuation, care must be taken to avoid double counting of benefits included in the transport appraisal and to allow for the fact that some activity may well be diverted from elsewhere in the local area.